Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
Help Is On The Way
Publishers are starting to see advertising green shoots, at least when it comes to video monetization on Facebook, Instagram, Snapchat and YouTube. CPMs, which bottomed out in mid-April, have been steadily rising to the point where they’re now not far off pre-pandemic levels, Digiday reports. The challenge for publishers is to continue moving the needle on CPMs while hanging onto the audience surges they enjoyed under lockdown. “While the publishers were glad to see revenue headed in a positive direction, some lamented the money they could have been making with the viewership they have experienced since March,” according to the story.
Unemployment Toll
Advertising agencies cut 10,000 jobs in April, representing a 4.8% decline in their overall headcount, according to BLS data. While severe, those numbers were eclipsed by staff reductions in traditional media. Employment at broadcast TV stations fell 6.6% (8,600 jobs lost) and newspaper employment fell 6.8% (8,200 jobs). Broadcast radio companies eliminated 5,400 jobs, or 6.9% of the workforce. And magazines cut 6% of staff, or 4,700 jobs. Digital media fared much better, cutting just 600 jobs in April, or 0.2% of the workforce. The job losses reflect that COVID-19 is accelerating the “digital divide” in media, Ad Age reports.
The CFO Trap
Pinterest must navigate a tricky line between its own cash flow requirements and the needs of advertiser clients requesting payment extensions. “On both sides of that equation, there are opportunities and risks,” Pinterest CFO Todd Morgenfeld tells The Wall Street Journal. Google and Facebook have the luxury to do as they see fit, since they have enough cash to float advertisers and are media plan must-haves. Pinterest isn’t profitable and most of its revenue comes from retail and CPG companies, so it can’t afford to lose clients over a payment tiff.
But Wait, There’s More!
- Antitrust Battle Focused On Ads Might Play To Google’s Advantage – The Information
- Discovery Reviews Production Costs After Saving On Quarantine Shows – WSJ
- Target Data And Aisle Rocket Merge To Form Data-Driven Marketing Agency – release
- With Real-Life Games Halted, Betting World Puts Action On Esports – NYT
- Big Media Co’s Donate Ad Time To Combat Racism – MediaPost
- Publishers Set For A Second Round Of Layoffs – Digiday
You’re Hired!
